Economics

Major Industries & Industrial Policies in Pakistan MCQs with Answers

What is the primary focus of Pakistan’s industrial policy?
a) Promoting small-scale industries only
b) Encouraging foreign investment in the textile sector
c) Expanding heavy industrial sectors while ensuring sustainable growth
d) Reducing government control in all industries

Answer
c) Expanding heavy industrial sectors while ensuring sustainable growth

Which sector plays the most significant role in Pakistan’s economy?
a) Textile and garment industry
b) Agriculture
c) Oil and gas industry
d) Automobile industry

Answer
a) Textile and garment industry

Which of the following industries is central to Pakistan’s industrial development?
a) Agricultural machinery manufacturing
b) Chemical and petrochemical industry
c) Electronics manufacturing
d) Textile and garment production

Answer
d) Textile and garment production

What was the main objective of the 2005 Industrial Policy of Pakistan?
a) To promote import substitution
b) To boost the export potential of industrial products
c) To discourage private sector investment
d) To focus on increasing government ownership of industries

Answer
b) To boost the export potential of industrial products

Which of the following sectors has received significant government support under Pakistan’s industrial policies?
a) Software and IT
b) Heavy machinery manufacturing
c) Textile industry
d) Agriculture and farming

Answer
c) Textile industry

Which government program was introduced to promote industrial growth in the 1990s?
a) Industrial Finance Corporation of Pakistan (IFCP)
b) Pakistan Industrial Credit and Investment Corporation (PICIC)
c) Small Industries Development Board (SIDB)
d) Export Development Fund (EDF)

Answer
b) Pakistan Industrial Credit and Investment Corporation (PICIC)

What is one of the goals of Pakistan’s National Industrial Policy?
a) To focus solely on traditional agriculture
b) To restrict foreign investments in key industries
c) To encourage the use of advanced technology and modern machinery
d) To reduce government support for industry

Answer
c) To encourage the use of advanced technology and modern machinery

Which of the following industries in Pakistan is the largest in terms of contribution to export earnings?
a) Textiles and clothing
b) Sugar industry
c) Cement industry
d) Automobile industry

Answer
a) Textiles and clothing

Which of the following is a major challenge for industrial growth in Pakistan?
a) Lack of raw materials
b) Power shortages and energy crisis
c) Excessive government subsidies
d) Overabundance of skilled labor

Answer
b) Power shortages and energy crisis

The government of Pakistan introduced a new industrial policy in 2021. What is its primary aim?
a) Privatization of all state-owned industries
b) Incentivizing industries to invest in renewable energy
c) Providing subsidies to agricultural industries
d) Encouraging digitization and automation in industries

Answer
d) Encouraging digitization and automation in industries

Which of the following sectors has seen the least industrial development in Pakistan?
a) Textile and garment
b) Information technology
c) Food processing
d) High-tech manufacturing

Answer
d) High-tech manufacturing

Which Pakistani industry benefits most from foreign direct investment (FDI)?
a) Cement industry
b) IT and software development
c) Textile and apparel
d) Leather goods manufacturing

Answer
c) Textile and apparel

Which of the following is a major export of Pakistan’s industrial sector?
a) Fruits and vegetables
b) Cotton yarn and textiles
c) Petroleum products
d) Gold and minerals

Answer
b) Cotton yarn and textiles

The Pakistan Industrial Credit and Investment Corporation (PICIC) was established to:
a) Provide loans to small-scale industries
b) Focus on promoting foreign trade
c) Help in the development of large industries
d) Finance agriculture projects

Answer
c) Help in the development of large industries

In terms of energy consumption, which industry is the largest in Pakistan?
a) Textile industry
b) Cement industry
c) Chemical industry
d) Steel industry

Answer
b) Cement industry

Which Pakistani industrial policy focuses on the promotion of innovation and technology?
a) 2005 Industrial Policy
b) 2016 Industrial Policy
c) 2018 Pakistan Industrial Policy
d) 2021 National Industrial Policy

Answer
d) 2021 National Industrial Policy

What is a major benefit of the 2016 Pakistan Industrial Policy?
a) Elimination of tariffs on foreign imports
b) Introduction of incentives for local manufacturers to enhance production
c) Establishment of new nationalized industries
d) Reduction in foreign investment opportunities

Answer
b) Introduction of incentives for local manufacturers to enhance production

Which of the following industries is essential for the growth of the construction sector in Pakistan?
a) Cement industry
b) Textile industry
c) Food processing industry
d) Electronics industry

Answer
a) Cement industry

What was a key feature of the industrial policy introduced in Pakistan in 2013?
a) Focus on reducing tariffs for international goods
b) Promoting green and clean technologies
c) Shifting industrial production entirely to rural areas
d) Privatization of public sector industries

Answer
b) Promoting green and clean technologies

What is the role of small and medium enterprises (SMEs) in Pakistan’s industrial policy?
a) They are seen as a threat to large industries
b) They are encouraged for economic diversification and job creation
c) They are restricted in terms of production capacity
d) They receive minimal government attention

Answer
b) They are encouraged for economic diversification and job creation

Which of the following government initiatives aims to support small-scale industries in Pakistan?
a) Export Development Fund (EDF)
b) Industrial Support Program (ISP)
c) Pakistan Industrial Credit Corporation (PICC)
d) Textile Modernization Fund (TMF)

Answer
a) Export Development Fund (EDF)

The 2018 Industrial Policy in Pakistan emphasized the development of which sector?
a) Software development and IT
b) Heavy machinery and infrastructure industries
c) Small-scale industries and agriculture
d) Import substitution in electronics

Answer
b) Heavy machinery and infrastructure industries

Which of the following is an export-related benefit under Pakistan’s industrial policy?
a) No tax exemptions for exporting industries
b) Tax rebates and incentives for export-oriented industries
c) Introduction of new trade barriers
d) Elimination of export subsidies

Answer
b) Tax rebates and incentives for export-oriented industries

How do industrial policies in Pakistan encourage foreign investment?
a) By offering tax holidays and financial incentives
b) By restricting foreign ownership in key industries
c) By discouraging joint ventures
d) By limiting foreign market access

Answer
a) By offering tax holidays and financial incentives

Which of the following sectors is most affected by energy shortages in Pakistan’s industrial policies?
a) Information technology
b) Textile and garment industry
c) Petroleum refining
d) Pharmaceutical industry

Answer
b) Textile and garment industry

Which of the following is the government’s primary goal for the textile industry in Pakistan?
a) Reduce exports to other countries
b) Modernize and increase the export potential
c) Focus only on domestic consumption
d) Encourage mechanization and automation in other sectors

Answer
b) Modernize and increase the export potential

Which of the following policies addresses the promotion of renewable energy use in Pakistan’s industries?
a) National Energy Efficiency and Conservation Act
b) Industrial Growth Policy 2020
c) Pakistan Renewable Energy Policy
d) Pakistan Green Industrial Policy

Answer
a) National Energy Efficiency and Conservation Act

Which of the following is an important part of Pakistan’s industrial policy in relation to the agriculture sector?
a) Encouraging the import of agricultural goods
b) Investment in agro-based industries and value-added products
c) Limiting agricultural production to self-consumption
d) Focusing solely on export of raw materials

Answer
b) Investment in agro-based industries and value-added products

Which industrial sector has seen the largest growth in terms of exports in recent years in Pakistan?
a) Textiles and garments
b) Cement
c) Chemicals and fertilizers
d) Steel and iron manufacturing

Answer
a) Textiles and garments

What is the goal of Pakistan’s industrial policies in terms of job creation?
a) Encourage job outsourcing to foreign countries
b) Focus on creating jobs in the service sector only
c) Promote industrialization in rural areas to reduce unemployment
d) Limit the growth of industrial jobs due to automation

Answer
c) Promote industrialization in rural areas to reduce unemployment

What is one of the key features of Pakistan’s industrial growth strategies?
a) Overemphasis on foreign imports
b) Focus on self-reliance and reducing dependency on foreign goods
c) Decrease in industrial automation
d) Shifting industrial production to urban areas only

Answer
b) Focus on self-reliance and reducing dependency on foreign goods

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